Revenue Growth - Total revenue for the thirteen weeks ended March 29, 2025, increased by $5,563,000 or 11.57% to $53,632,000 compared to $48,069,000 for the same period in 2024[74]. - Total revenue for the twenty-six weeks ended March 29, 2025, increased by $10,685,000 or 11.46% to $103,894,000, driven by increased package liquor store and restaurant sales[90]. Sales Performance - Restaurant food sales reached $32,586,000 for the thirteen weeks ended March 29, 2025, up from $29,356,000 in the prior year, driven by recent price increases and new restaurant openings[75]. - Restaurant food sales totaled $61,712,000 for the twenty-six weeks ended March 29, 2025, compared to $55,711,000 for the same period in 2024, reflecting an increase due to recent price increases[91]. - Restaurant bar sales increased to $8,194,000 for the thirteen weeks ended March 29, 2025, compared to $7,740,000 for the same period in 2024, attributed to recent price increases[76]. - Package store sales totaled $12,051,000 for the thirteen weeks ended March 29, 2025, an increase of $1,911,000 from $10,140,000 in the prior year, primarily due to increased store traffic[77]. - Package store sales revenue increased to $24,486,000 for the twenty-six weeks ended March 29, 2025, up from $20,742,000, with same-store sales increasing by 18.05%[93]. - The average weekly sales for same-store package liquor stores increased by 18.85%, from $780,000 to $927,000 for the thirteen weeks ended March 29, 2025[77]. Costs and Expenses - Costs and expenses rose by $4,613,000 or 10.16% to $49,997,000 for the thirteen weeks ended March 29, 2025, influenced by higher payroll and food costs[78]. - Costs and expenses for the twenty-six weeks ended March 29, 2025, increased by $9,669,000 or 10.78% to $99,401,000, but decreased as a percentage of total revenue to approximately 95.68%[94]. - Operating expenses increased by $674,000 or 10.56% to $7,057,000 for the thirteen weeks ended March 29, 2025, primarily due to inflation and the opening of a new restaurant[83]. - Selling, general and administrative expenses increased by $373,000 or 14.46% to $2,952,000 for the twenty-six weeks ended March 29, 2025, with expenses as a percentage of total revenue rising to 2.84%[101]. - Depreciation and amortization expense increased by $315,000 or 15.81% to $2,307,000 for the twenty-six weeks ended March 29, 2025, representing 2.22% of total revenue[102]. Profitability - Gross profit for food and bar sales increased to $27,415,000 for the thirteen weeks ended March 29, 2025, compared to $24,886,000 in the prior year, with a gross profit margin of 67.23%[80]. - Gross profit for package store sales increased to $3,382,000 for the thirteen weeks ended March 29, 2025, up from $2,648,000 for the same period in 2024, with a gross profit margin of 28.06%[81]. - Net income for the thirteen weeks ended March 29, 2025, increased by $822,000 or 32.57% to $3,346,000, with net income as a percentage of revenue at 6.24%[88]. - Net income for the twenty-six weeks ended March 29, 2025 increased by $860,000 or 27.58% to $3,978,000 from $3,118,000 for the same period in 2024, with a net income margin of 3.83% compared to 3.35% in 2024[104]. - Net income attributable to Flanigan's Enterprises, Inc. stockholders rose by $694,000 or 33.84% to $2,745,000 from $2,051,000 for the same period in 2024, with a margin of 2.64% compared to 2.20% in 2024[105]. Cash and Assets - Cash and cash equivalents as of March 29, 2025 were approximately $22,973,000, an increase of $1,571,000 from $21,402,000 as of September 28, 2024[107]. - Current assets increased to $34,192,000 as of March 29, 2025, from $31,529,000 as of September 28, 2024, resulting in working capital of $13,926,000[119]. - Net cash provided by operating activities for the twenty-six weeks ended March 29, 2025 was $5,729,000, compared to $2,133,000 for the same period in 2024[110]. Debt and Financing - Long-term debt as of March 29, 2025 was $21,247,000, a decrease from $21,912,000 as of September 28, 2024[113]. - The company terminated an $8.90M Term Loan Swap and entered into a new interest rate swap agreement for $8,015,601 at a fixed rate of 4.90% for 12 years and 10 months[134]. - For the twenty-six weeks ended March 29, 2025, the company recognized $290,000 of non-cash gains related to the interest rate swap agreement as interest and other income[134]. Future Outlook - The company anticipates continued increases in restaurant food and bar sales due to recent price adjustments[75][76]. - The company anticipates capital expenditures for refurbishment in fiscal year 2025 will be approximately $550,000, which may be significantly higher[112]. - Menu price increases targeted an annual revenue increase of approximately 0.84% for bar offerings effective February 23, 2025, and 4.90% for bar offerings effective December 4, 2024[106]. - Inflation is materially impacting operating results, particularly in food, beverage, and labor costs, prompting the company to increase menu prices[128]. Investments and Interest - The company held approximately $1,296,000 in 90-day government guaranteed certificates of deposit with fixed annual interest rates between 4.1% and 4.35%[135]. - The company also had approximately $244,000 in 180-day government guaranteed certificates of deposit at a fixed annual interest rate of 4.2%[135]. - Cash resources at March 29, 2025, offset bank charges, and excess cash earned interest at variable rates, affecting the return on these funds[135]. - There is no assurance that interest rates will increase or decrease over the next fiscal year, which could materially affect operations[136].
Flanigan's Enterprises(BDL) - 2025 Q2 - Quarterly Report